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Bad Earnings Report for 500.com
Thursday, February 25, 2016 : ASIAN ONLINE LOTTERY SUFFERS ANOTHER BAD YEAR
500.com continues to be hobbled by Chinese crackdown on corruption.
The Chinese online lottery 500.com continued to be hobbled by the widespread Chinese crackdown on corruption last year, posting a disappointing 82.8 decline in net revenue at RMB99.6 million ($15.4 million) for FY-2015.
Operating losses continued, resulting in an alarming 301.6 percent y-o-y decline to a loss of RMB301.4 million compared with an operating profit of RMB149.5 million in 2014.
Net losses were recorded at RMB323.9 million.
Reporting on the "temporary" suspension of online lottery operations imposed by the Chinese government last March, Zhengming Pan, CEO of 500.com commented:
“We voluntarily and temporarily suspended our online lottery sales operations in response to the promulgation of the Self-Inspection Notice. Such temporary and voluntary suspension materially and adversely impacted our financial and operational results for the fourth quarter and full year of 2015.”
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